AMD shares rocketed 6% today after Reuters broke news that IBM can run quantum error-correction algorithms directly on AMD's conventional chip architecture. The breakthrough validates their August partnership and signals a potential shortcut in the quantum computing race that could reshape the entire industry timeline.
Wall Street got its first taste of quantum computing's commercial reality today, and AMD stockholders are celebrating. The chipmaker's shares jumped over 6% after Reuters reported that a forthcoming paper will demonstrate IBM successfully running quantum error-correction algorithms on AMD's field-programmable gate array (FPGA) chips.
IBM shares climbed 6% alongside AMD, suggesting investors see this as more than just a technical curiosity. The development represents a potential paradigm shift in how quantum computing might actually reach the market - not through exotic quantum processors alone, but by leveraging the conventional semiconductor infrastructure that companies like AMD already manufacture at scale.
The timing couldn't be more strategic. Back in August, IBM and AMD announced their partnership to develop quantum computing capabilities, with IBM targeting a full quantum computer launch by 2029. Today's news suggests that timeline might be conservative if quantum algorithms can run effectively on existing hardware.
What makes this breakthrough particularly significant is IBM's focus on error correction - the holy grail of practical quantum computing. Traditional quantum systems are notoriously fragile, requiring exotic cooling and isolation systems. If IBM can achieve meaningful quantum error correction using conventional chips, it removes one of the biggest barriers to widespread quantum adoption.
The quantum computing race has intensified dramatically over the past year. Microsoft rolled out its first quantum computing chip in early 2025, while Google made waves with its Willow processor breakthrough last December. A Google quantum executive told CNBC in March that the technology was still "five years out from a real breakout," but IBM's AMD partnership suggests that timeline is compressing rapidly.